|

USD/CAD Price Analysis: Bulls and bears battle in key territory

  • USD/CAD bears are lurking with prospects of a deeper correction.
  • Bulls remain in play while above the triangle. 

test As per the prior analysis, USD/CAD Price Analysis: Bulls and bears battle it out at key structure, the bears did indeed move into prior highs near 1.3580, an area that has started to offer support. A break of 1.3700 opens the prospects of a run on liquidity towards 1.3800/25 stops in a continuation of the short squeeze. 

USD/CAD prior analysis

It was stated that USD/CAD is in an uptrend with eyes on a break of 1.4000. However, the following charts illustrated a number of key structures to take into consideration:

There are conflicting patterns on the weekly chart, wit the W-formation, on the chart above, and an M pattern on the chart below. 

Given the price had rallied towards the neckline of the M-formation, the path of least resistance was expected to be to the downside as the following daily chart showed:

USD/CAD broke out of the triangle meeting the 1.3650s and a correction was anticipated into prior highs near 1.3580.

 USD/CAD update, daily & H4 chart

While the bias remains to the upside with the price on top of the triangle, a deeper correction could be on the cards given the strength of the correction and prospects of mitigation of a price imbalance below 1.3600. 

Author

Ross J Burland

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

More from Ross J Burland
Share:

Editor's Picks

EUR/USD clings to gains around 1.1800

EUR/USD manages to regain composure and retests the 1.1800 region in quite a positive start to the week. The pair’s bounce follows the US Dollar’s offered stance post-SCOTUS ruling ahead of important US data and Fedspeak on Tuesday.

GBP/USD looks stuck around 1.3500 amid firm gains

GBP/USD is pushing further north on Monday, revisiting the 1.3500 hurdle and beyond. Cable’s uptick is largely being fuelled by the broader softness in the Greenback, amid lingering uncertainty around tariffs.

Gold pops above $5,200, four-week highs

Gold is holding onto its bullish tone on Monday, reaching new multi-week highs just past the $5,200 mark per troy ounce. Fresh trade-war concerns, coupled with rising geopolitical tensions in the Middle East, are keeping demand for the yellow metal well on the rise.

Ethereum Price Forecast: BitMine's holdings reach 4.42 million ETH as Fundstrat predicts 87% win-ratio

Ethereum (ETH) treasury firm BitMine Immersion Technologies (BMNR) scooped up 51,162 ETH last week, marking its largest purchase since December.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.